Markets forecast to remain positive

HÀ NỘI — Vietnamese stock markets are expected to remain positive in the short-term, with the VN-Index moving towards the 990-1,000 point range next week.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange rose 0.14 per cent to close Friday at 988.91 points, marking a five-day gain of nearly 4 per cent.

The minor HNX Index on the Hà Nội Stock Exchange finished last week up 0.66 per cent to close at 106.82 points, marking a weekly gain of 0.6 per cent.

An average of 228.7 million shares was traded in each session last week, worth VNĐ4.9 trillion (US$210 million).

According to Bảo Việt Securities Company, the market would be strongly affected by large-cap stocks and see a wide divergence among stock groups.

Capital flows were also forecast to run into stocks that had not made significant gains or were accumulating profits such as oil and gas, bank, building material and real estate stocks.

“Although the short-term trend remains positive, investors should avoid new buying positions at above 991 points due to the rising possibility of a market correction at that resistance zone,” BVSC said in its report.

Since the Tết (Lunar New Year) holiday, foreign investors had bought a net value of VNĐ2.7 trillion on HoSE, helping the market gain momentum.

A large part of the foreign cash inflow came from notable exchange-traded funds (ETFs) such as VanEck Vectors Vietnam ETF (VNM ETF), and db-trackers Vietnam ETF (FTSE Vietnam ETF) and VFMVN30 ETF.

According to data, since the Lunar New Year, FTSE Vietnam ETF has issued a total of 520,000 fund certificates, equivalent to VNĐ390 billion. As Vietnamese stocks accounted for 100 per cent of the FTSE Vietnam ETF portfolio, all of the money above was disbursed by FTSE Vietnam ETF into Vietnamese stocks.

VNM ETF has also issued more than 1 million fund certificates, equivalent to VNĐ400 billion since the Lunar New Year. From the beginning of 2019, VNM ETF has issued more than 2 million fund certificates, equivalent to VNĐ760 billion.

Unlike FTSE Vietnam ETF, the number of Vietnamese stocks in VNM ETF’s portfolio accounted for only about 75 per cent. However, the number of fund certificates issued in the early days of the year, worth millions of dollars, also brought positive signs to the Vietnamese stock market.

Meanwhile, the VFMVN30 ETF has issued 16.3 million fund certificates, equivalent to VNĐ246 billion since the Lunar New Year. Since the beginning of 2019, VFMVN30 ETF has issued 23.8 million fund certificates, equivalent to VNĐ353 billion.

It was estimated that since the Lunar New Year, the amount of foreign money flowing into the Vietnamese stock market via the three funds were equivalent to 37 per cent of total foreign net buying on HoSE. — VNS